Child Tax Credit
Notify your tax accountant of any recent changes to dependents in the current year; You can be eligible for a significant tax credit on your return!
Qualifying Child
- Is the taxpayers son, daughter, stepchild, foster child, sibling, stepsibling, half brother, half sister, or a descendent of any of them.
- Lived with the tax payer for more than half of the year
- Was under the age of 17
- Did not provide over half of his or her own support during the year
- Is a US citizen, US national, US resident alien (child tax credits are not allowed for nonresident alien children residing in Canada or Mexico even if they qualify as dependents)
- Is younger than the taxpayer claiming the child
- Does not file a joint tax return (or files jointly only to claim a refund of withheld income tax or estimated tax paid), and
- Is claimed as a dependent of the taxpayer claiming the Child Tax Credit
The maximum nonrefundable Child Tax Credit is $2,000 for each qualifying child!
Credit for Other Dependents
- A $500 nonrefundable credit is available for dependents who are not qualifying children for the Child Tax Credit and each qualifying relative.
AGI Phaseout
- The Child Tax Credit is reduced $50 for each $1,000 of modified AGI:
- $400,000 for Married Filing Jointly
- $200,000 for all other filing statuses
If you're a taxpayer in the New York Metro Area and need help making the best decisions for tax return, request a consultation with our experienced accountants today. We look forward to providing you service.
